Julie Foerster stated from the stage at Consensus 2023 on Friday that the Internal Revenue Service expects to issue crypto tax guidance “in roughly 12 months.”
The director of the digital assets initiative also stated that the IRS intends to alter its perspective on cryptocurrencies and wants to collaborate more with the industry.
Foerster, who emphasized that her opinions are her own and not necessarily those of the IRS, stated that her five-person team was with her at Consensus, presumably talking to people about taxation and how the U.S. agency can improve.
At Consensus 2023, the agency’s cryptocurrency taxation expert, Julie Foerster, emphasized community engagement.
Julie Foerster stated from the stage at Consensus 2023 on Friday that the Internal Revenue Service expects to issue crypto tax guidance “in roughly 12 months.”
The director of the digital assets initiative also stated that the IRS intends to alter its perspective on cryptocurrencies and wants to collaborate more with the industry.
Foerster, who emphasized that her opinions are her own and not necessarily those of the IRS, stated that her five-person team was with her at Consensus, presumably talking to people about taxation and how the U.S. agency can improve.
She stated, “We are collaborating with you all to ensure accuracy and to develop a strategy.” She later added that the IRS “needs to evaluate the talents of its current employees and those it will hire in the future… We must have the proper equipment and personnel.”
The IRS currently views cryptocurrencies as virtual assets that can be used as payment for products and services, digitally traded between users, and exchanged for other currencies.
Even though cryptocurrencies are not deemed to be fiat currency, for federal tax purposes they are considered property, and users are therefore required to report their digital asset activity on their tax returns.
Foerster emphasized that the environment for digital assets is constantly changing, and he emphasized the need to improve communications between the agency and the cryptocurrency community. In particular, she urged individuals to weigh in on a March proposal to tax non-fungible tokens (NFTs) as collectibles. The deadline for comments is June 9.
Foerster added that the US tax agency is also discussing crypto taxation best practices with some of its foreign counterparts, which she did not identify.
“I will state that we have had countries approach our large business and international division and request to speak with us. She stated that events such as this and others that we have attended provide us with an international perspective.
She concluded, however, that the agency must find “other ways to communicate our message to encourage voluntary compliance.”